NO ONE GOES TO TX BUT MERCENARIES:

As Bloomberg News reports, California's economy is hardly headed for disaster. On the contrary, it is No. 1 among the states by most economic measures. Furthermore, it is emerging from the pandemic in very good shape.

And so when Texas Gov. Greg Abbott said last February that California uses "heavy-handed government tactics that drive away businesses," California Gov. Gavin Newsom had to respond. "We remain the fifth largest economy in the world," Newsom's office said. "No. 1 in Bloomberg's Innovation Index and home to 20 of Fortune's top 100 fastest growing companies in the world."

California's small population loss last year largely reflected former President Donald Trump's curb on new visas. While some people do leave California, others arrive. Many of the newcomers are immigrants with grand ambitions and a desire to live in a welcoming place.

As the pandemic draws to a close, California is sitting pretty with an operating budget surplus of $75 billion. This is the product of a surging economy and the collection of capital gains taxes. It would seem that a few rich Californians did not move to Texas after all.

Thanks to this surplus, California has embarked on what Newsom calls the "largest state tax rebate in American history." Two-thirds of Californians are receiving Golden State stimulus checks totaling almost $12 billion.

What about economic growth? California's gross domestic product has jumped 21 percent over the past five years, leaving Texas' 12 percent gain in its shadow. Even New York state, another of Abbott's targets, outdid Texas with a 14 percent rise in state GDP.

If California were a country, its growth rate would have exceeded that of Japan, Germany and the entire U.S. Only China grew faster.

"For all its bluster as being 'best for business,' Texas can't match California's innovation," Bloomberg said. Some 18 percent of California's corporate locations are dedicated to research and development. The percentage of Texas facilities for research and development are just under half that of California's.

Tweet   @brothersjudd